Homebuilder Porter Davis collapsed owing close to $33 million to the nation’s biggest bank, on top of other debts.
Documents filed with the corporate regulator show the group owes $32.9 million to Commonwealth Bank, which is named as the “major secured creditor”.
“We have been advised that the total amount owing to the major secured creditor, the Commonwealth Bank of Australia, across all entities in the group is $32,939,409,” liquidators Grant Thornton said in one document filed with the Australian Securities and Investments Commission.
“Our investigations are ongoing to determine if these debts are cross collateralised across the group.”
The liquidators are still trying to determine Porter Davis’ overall financial position.
As a secured creditor, CBA would be first in line to get its money back. It’s believed millions are also owed to unsecured creditors.
The documents also reveal a Deloitte advisor to Porter Davis first contacted Grant Thornton about liquidating the company on March 23, a week before it was publicly revealed it had gone bust. Grant Thornton was appointed on March 31.
About 1700 homes across Victoria and Queensland were left in limbo when Porter Davis went into liquidation last month.
The Victorian Building Authority is investigating whether Porter Davis has breached any laws after customers claimed they were left without domestic building insurance despite paying their deposits.
Victorian Premier Daniel Andrews has flagged the announcement of support for families devastated by the builder’s demise by the end of the week.
“(We’re) trying to work out exactly what’s happened by way of the conduct of some people and that Porter Davis business, as well as what it means for individual customers,” Mr Andrews said on Wednesday.
“It is frustrating, I know, for everybody that we haven’t been able to make an announcement to this point, but getting it right is I think the most important thing, and that’s what we’re working towards.”
– AAP
